The Impact of Branding (2024)

Introduction

Branding is the process of creating a name, symbol, logo, or design that represents a company or product. It is how businesses differentiate themselves from their competitors and build customer loyalty. A strong brand can support an increase in sales, help a business attract new customers, and grow its market share.

Creating a brand warrants more than just designing a logo or choosing a catchy name. It requires research into the target audience, competition and the company's strengths and weaknesses. Collecting the various insights enables creating a brand identity that resonates with consumers. Among the elements that make up a brand are the name, logo, tagline, colours, fonts and overall look and feel. Strategists use different techniques to illustrate the type of product or services they are selling through that brand identity.

Below are a few insights on the impact of branding on your business success.

Makes Your Business More Recognisable

Before anything else, it's essential to understand that branding is more than just having a nice logo. It's the totality of how customers perceive your business, encompassing everything from customer service to marketing materials.

A well-designed brand can make your business more recognisable and memorable. Customers are more likely to do business with companies they know and trust. Moreover, it's essential to create a strong visual identity that accurately represents what your business is all about. Amazingly, around76% of female and 80% of male customersbuy items from brands they recognise.

Engaged customers with your brand are52% more valuablethan merely satisfied customers. And suppose you manage to connect with your customers at an emotional level. In that case, you can generate a staggering 306% higher lifetime value through them.

Lets You Charge More

A key aspect of branding is to have a consistent presence on all advertising platforms, which has the potential to boost businessrevenue by 23%, according to Forbes. But how exactly does branding help a business achieve this? For example, have you ever wondered why you're willing to pay more for a specific Coffee brand than other coffee sellers? That attribution to the continuous brand identity-building activities, creating value in the consumers' minds. It also made a unique proposition and differentiation from the competition, where customers accepted premium prices that set them apart from other products or services in the market. Hence, a strong brand can also help you charge more for your products or services. Customers are often willing to pay a premium for high-quality brands, so investing in branding can help you increase your prices without losing customers.

Leads to Better Communication

A clearly defined brand ensures that everyone involved in your business, from customers to the sales team to other stakeholders and social media followers, are fully aligned.

On the one hand, you can communicate your value proposition to potential customers effectively. But on the other hand, your target audience obtains and develops an accurate perception of your brand, which is crucial for brand success.

Hence, efficient communication helps build strong relationships between businesses and customers, and this, in turn, leads to brand authenticity.Over 92% of marketersbelieve that brand authenticity is essential for their brand. Generating sales won't be accessible if your customers don't view your brand as authentic.

Prompts Customer Loyalty

The most significant impact of branding efforts is that they help you build customer loyalty. Customers are more likely to stick with your brand and continue doing business with you if they have a positive experience. If you want your business to grow, you should aim to develop this level of loyalty. Brands are developing loyalty programmes through their branding efforts. Strategically that enables better marketing budget management, and

Customers are fully aware of a brand ethos and what sort of value it delivers. Hence that will impact their decision, whether they should be brand loyal or even a raving fan. While most people are loyal to at least one brand, over85.8% are loyalto no more than ten brands. Hence, maintaining a top consideration in your industry is vital.

Promotes Viral Marketing and Brand Advocacy

Branding can inspire customer advocacy when customers promote your brand to their social circle. It helps create "ambassadors" for your business - customers who are so impressed with your brand that they're willing to tell their friends and family about you. People, especially their buying behaviour, are strongly influenced by what the people they trust have to say about brands.

For example, if their friends disapprove of a product,28% of millennialswon't try it. Conversely, a product recommendation affects between20% and 50%of customers' purchase decisions.

Sets You Apart from Other Brands

Creating a solid brand takes time and effort, but it's worth it. There are many elements to consider when developing a brand. That includes your name and logo to your values and messaging. That combination forms a brand personality that is different from all other players in the market. Over time, this differentiated brand identity gives you an edge over your competition.

With continuous reinforcement, anchoring the brand personality in the minds of your targeted customers becomes imminent. That results in maintaining a top-of-the-mind brand recall when it's time to make a purchase decision. If your target audience remembers you for all the right reasons, there's no reason for them not to buy from you. In addition, people generally aspire to have branded products, and you may become their top choice that they may feel proud of having.

There's also a strong connection between branding and personalisation. Personalisation is key to standing out in the highly competitive business landscape. As part of your branding efforts, you can send personalised content to prospects looking to learn more about your brand. Interestingly,73% of shoppersprefer a personalised shopping experience.

To ensure that your branding efforts effectively differentiate your business from the competition, you'll need a robust branding strategy that clearly defines your brand. However, this includes answers to questions like what are your core values? What makes you unique? When you know the answers to these questions, you can start to craft a message that will resonate with your target market. Once you've defined your brand, ensure all your communications reflect it, including everything from how you answer the phone to the design of your website. Keep it consistent throughout.

We also recommend telling a story. People love stories, so use them to help communicate your brand message. Share stories about your customers, your employees, or even yourself. More importantly, try to create an emotional connection with them. People who feel emotionally connected to your brand are likelier to become loyal customers. Find ways to tap into the emotions of your target market, and you'll see your brand start to take off.

Influences on People's Psychology

Suppose you've worked as a brand manager. In that case, you should be well aware of the psychology of colours that companies use to influence the minds of potential customers. According to research, colours alone can influence up to90% of a first impression. For example, yellow, orange, and red can spark emotions from warmth and comfort to anger and hostility. But depending on their culture and gender, different people perceive colours differently.

The right colours can make all the difference in how people perceive your brand. That can influence emotions, create a powerful visual representation, and offer a wide range of splendid hues for branding.

Colours are usually the focal point in branding, representing brands and creating differentiation. The canvas backpack with a yellow lock and leash on its handle has become one of those red/yellow distinctive features associated only with this brand!

Use colour to depict your brand in the best possible way. Many different ways affect customers' perception of a company and its products. Hence find the combination that works for you.

With well-defined brand characteristics, marketing efforts are tuned to successful Marketing investments geared towards entrenching the brand values and promise in their prospects' minds. Creating awareness will have better success, leading to trial and adoption. Hence brand loyalty becomes a more manageable task.

We at OAK Media Solutions help our clients across the different funnel levels to achieve measurable results and a better return on investment.

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